the legal practitioners indemnity insurance fund npc … · 2019. 7. 4. · 2 2019/2020 lpiif...

1 2019/2020 LPIIF Master Policy

THE LEGAL PRACTITIONERS’ INDEMNITY INSURANCE FUND NPC

(Registration number 93/03588/08)

PROFESSIONAL INDEMNITY INSURANCE POLICY

1 JULY 2019 TO 30 JUNE 2020


Preamble

The Legal Practitioners’ Fidelity Fund, as permitted by the Act, has contracted with

the Insurer to provide professional indemnity insurance to the Insured, in a sustainable

manner and with due regard for the interests of the public by:

a) protecting the integrity, esteem, status and assets of the Insured and the legal

profession;

b) protecting the public against indemnifiable and provable losses arising out of Legal

Services provided by the Insured, on the basis set out in this policy.


Definitions:

I Act:

The Legal Practice Act 28 of 2014;

II Annual Amount of Cover:

The total available amount of cover for the Insurance Year for the aggregate of

payments made for all Claims, Approved Costs and Claimants’ Costs in

respect of any Legal Practice as set out in Schedule A;

III Approved Costs:

Legal and other costs incurred by the Insured with the Insurer’s prior written

permission (which will be in the Insurer’s sole discretion) in attempting to

prevent a Claim or limit the amount a Claim;

IV Legal Practitioners’ Fidelity Fund:

As referred to in Section 53 of the Act;

V Bridging Finance:

The provision of short-term finance to a party to a Conveyancing Transaction

before it has been registered in the Deeds Registry;

VI Claim:

A written demand for compensation from the Insured, which arises out of the

Insured’s provision of Legal Services. For the purposes of this policy, a written

demand is any written communication or legal document that either makes a

demand for or intimates or implies an intention to demand compensation or

damages from an Insured;

VII Claimant’s Costs:

The legal costs the Insured is obliged to pay to a claimant by order of a court,

arbitrator, or by an agreement approved by the Insurer;

VIII Conveyancing Transaction:

A transaction which:


a) involves the transfer of legal title to or the registration of a real right in

immovable property from one or more legal entities or natural persons to

another; and/or

b) involves the registration or cancellation of any mortgage bond or real right

over immovable property; and/or

c) is required to be registered in any Deeds Registry in the Republic of South

Africa, in terms of any relevant legislation;

IX Cybercrime:

Any criminal or other offence that is facilitated by or involves the use of

electronic communications or information systems, including any device or the

internet or any one or more of them. (The device may be the agent, the facilitator

or the target of the crime or offence). Hacking of any of the electronic

environments is not a necessity in order for the offence or the loss to fall within

this definition;

X Defence Costs:

The reasonable costs the Insurer or Insured, with the Insurer’s written

consent, incurs in investigating and defending a Claim against an Insured;

XI Dishonest:

Bears its ordinary meaning but includes conduct which may occur without an

Insured’s subjective purpose, motive or intent, but which a reasonable legal

practitioner would consider to be deceptive or untruthful or lacking integrity or

conduct which is generally not in keeping with the ethics of the legal profession;

XII Employee:

A person who is or was employed or engaged by the Legal Practice to assist

in providing Legal Services. (This includes in-house legal consultants,

associates, professional assistants, candidate legal practitioners, paralegals

and clerical staff but does not include an independent contractor who is not a

Practitioner.);


XIII Excess:

The first amount payable by the Insured (or deductible) in respect of each and

every Claim (including Claimant’s Costs) as set out in schedule B.

XIV Fidelity Fund Certificate:

A certificate provided for in terms of section 85 of the Act, read with Rules 3,

47, 48 and 49 of the South African Legal Practice Council Rules made under

the authority of section 95(1) of the Act;

XV Innocent Principal:

Each present or former Principal who:

a) may be liable for the debts and liabilities of the Legal Practice;

b) did not personally commit or participate in committing the Dishonest,

fraudulent or other criminal act and had no knowledge or awareness of

such act;

XVI Insured:

The persons or entities referred to in clauses 5 and 6 of this policy;

XVII Insurer:

The Legal Practitioners’ Indemnity Insurance Fund NPC, Reg. No. 93/03588/08;

XVIII Insurance Year:

The period covered by the policy, which runs from 1 July of the first year to 30

June of the following year;

XIX Legal Practice:

The person or entity listed in clause 5 of this policy;

XX Legal Services:

Work reasonably done or advice given in the ordinary course of carrying on the

business of a Legal Practice in the Republic of South Africa in accordance with

the provisions of section 33 of the Act. Work done or advice given on the law

applicable in jurisdictions other than the Republic of South Africa are specifically


excluded, unless provided by a person admitted to practise in the applicable

jurisdiction;

XXI Practitioner:

Any attorney, advocate referred to in section 34(2)(b) of the Act , notary or

conveyancer as defined in the Act;

XXII Prescription Alert:

The computerised back-up diary system that the Insurer makes available to the

legal profession;

XXIII Principal:

An advocate referred in section 34(2)(b) of the Act, sole Practitioner, partner

or director of a Legal Practice or any person who is publicly held out to be a

partner or director of a Legal Practice;

XXIV Risk Management Questionnaire:

A self-assessment questionnaire which can be downloaded from or completed

on the Insurer’s website (www.lpiif.co.za) and which must be completed

annually by the advocate referred to in section 34(2)(b) of the Act, sole

practitioner, senior partner, director or designated risk manager of the Insured

as referred to in clause 5. The annual completion of this questionnaire is

compulsory, both in terms of the Master Policy (see clauses XXIV and 23) and

the South African Legal Practice Council Rules (the Rules) made under the Act.

The Insurer will not indemnify the Insured in respect of a Claim unless the

completed questionnaire has been submitted. For attorneys this is set out in

point 15 of the application for a Fidelity Fund certificate form (schedule 7A of

the Rules). Advocates referred to in section 34(2)(b) of the Act must also

complete this questionnaire annually (see point 13 of the application for a

Fidelity Fund certificate form (schedule 7B of the Rules).

XXV Road Accident Fund claim (RAF):

A claim for compensation for losses in respect of bodily injury or death caused

by, arising from or in any way connected with the driving of a motor vehicle (as

http://www.lpiif.co.za/


defined in the Road Accident Fund Act 56 of 1996 or any predecessor or

successor of that Act) in the Republic of South Africa;

XXVI Senior Practitioner:

A Practitioner with no less than 15 years’ standing in the legal profession, with

experience in professional indemnity insurance law;

XXVII Trading Debt:

A debt incurred as a result of the undertaking of the Insured’s business or trade.

(Trading debts are not compensatory in nature and this policy deals only with

claims for compensation.) This exclusion includes (but is not limited to) the

following:

a) a refund of any fee or disbursement charged by the Insured to a client;

b) damages or compensation or payment calculated by reference to any

fee or disbursement charged by the Insured to a client;

c) payment of costs relating to a dispute about fees or disbursements

charged by the Insured to a client; and/or

d) any labour dispute or act of an administrative nature in the Insured’s

practice.

What cover is provided by this policy?

1. On the basis set out in this policy, the Insurer agrees to indemnify the Insured

against professional legal liability to pay compensation to any third party:

a) that arises out of the provision of Legal Services by the Insured; and

b) where the Claim is first made against the Insured during the current

Insurance Year.

2. The Insurer agrees to indemnify the Insured for Claimants’ Costs and Defence

Costs on the basis set out in this policy.

3. The Insurer agrees to indemnify the Insured for Approved Costs in connection

with any Claim referred to in clause 1.


4. As set out in clause 38, the Insurer will not indemnify the Insured in the current

Insurance Year, if the circumstance giving rise to the Claim has previously been

notified to the Insurer by the Insured in an earlier Insurance Year.

Who is insured?

5. Provided that each Principal had a Fidelity Fund Certificate at the time of the

circumstance, act, error or omission giving rise to the Claim , the Insurer insures all

Legal Practices providing Legal Services, including:

a) a sole Practitioner;

b) a partnership of Practitioners;

c) an incorporated Legal Practice as referred to in section 34(7) of the Act; and

d) an advocate referred to in section 34 (2)(b) of the Act. For purposes of this

policy, an advocate referred to in section 34(2)(b) of the Act, will be regarded

as a sole practitioner.

6. The following are included in the cover, subject to the Annual Amount of Cover

applicable to the Legal Practice:

a) a Principal of a Legal Practice providing Legal Services, provided that the

Principal had a Fidelity Fund Certificate at the time of the circumstance, act,

error or omission giving rise to the Claim;

b) a previous Principal of a Legal Practice providing Legal Services, provided

that that Principal had a Fidelity Fund Certificate at the time of the

circumstance, act, error or omission giving rise to the Claim;

c) an Employee of a Legal Practice providing Legal Services at the time of the

circumstance, act, error or omission giving rise to the Claim;

d) the estates of the people referred to in clauses 6(a), 6(b) and 6(c).


e) subject to clause 16(c), a liquidator or trustee in an insolvent estate, where the

appointment is or was motivated solely because the Insured is a Practitioner

and the fees derived from such appointment are paid directly to the Legal

Practice.

Amount of cover

7. The Annual Amount of Cover, as set out in Schedule A, is calculated by reference

to the number of Principals that made up the Legal Practice on the date of the

circumstance, act, error or omission giving rise to the Claim.

A change during the course of an insurance year in the composition of a Legal

Practice which is a partnership will not constitute a new Legal Practice for purposes

of this policy and would not entitle that Legal Practice to more than one limit of

indemnity in respect of that Insurance Year.

8. Schedule A sets out the maximum Annual Amount of Cover that the Insurer

provides per Legal Practice. This amount includes payment of compensation

(capital and interest) as well as Claimant’s Costs and Approved Costs.

9. Cover for Approved Costs is limited to 25% of the Annual Amount of Cover or

such other amount that the Insurer may allow in its sole discretion.

Insured’s excess payment

10. The Insured must pay the Excess in respect of each Claim, directly to the claimant

or the claimant’s legal representatives, immediately it becomes due and payable.

Where two or more Claims are made simultaneously, each Claim will attract its own

Excess and to the extent that one or more Claims arise from the same circumstance,

act, error or omission the Insured must pay the Excess in respect of each such

Claim;

11. The Excess is calculated by reference to the number of Principals that made up

the Legal Practice on the date of the circumstance, act, error or omission giving


rise to the Claim, and the type of matter giving rise to the Claim, as set out in

Schedule B.

12. The Excess set out in column A of Schedule B applies:

a) in the case of a Claim arising out of the prescription of a Road Accident

Fund claim. This Excess increases by an additional 20% if Prescription

Alert has not been used and complied with by the Insured, by timeous

lodgement and service of summons in accordance with the reminders sent

by Prescription Alert;

b) in the case of a Claim arising from a Conveyancing Transaction.

13. In the case of a Claim where clause 20 applies, the excess increases by an

additional 20%.

14. No Excess applies to Approved costs or Defence costs.

15. The Excess set out in column B of Schedule B applies to all other types of Claim.

What is excluded from cover?

16. This policy does not cover any liability for compensation:

a) arising out of or in connection with the Insured’s Trading Debts or those of any

Legal Practice or business managed by or carried on by the Insured;

b) arising from or in connection with misappropriation or unauthorised borrowing

by the Insured or Employee or agent of the Insured or of the Insured's

predecessors in practice, of any money or other property belonging to a client

or third party and/or as referred to in section 55 of the Act;

c) which is insured or could more appropriately have been insured under any other

valid and collectible insurance available to the Insured, covering a loss arising

out of the normal course and conduct of the business or where the risk has been

guaranteed by a person or entity, either in general or in respect of a particular


transaction, to the extent to which it is covered by the guarantee. This includes

but is not limited to Misappropriation of Trust Funds, Personal Injury,

Commercial and Cybercrime insurance policies;

d) arising from or in terms of any judgment or order(s) obtained in the first instance

other than in a court of competent jurisdiction within the Republic of South

Africa;

e) arising from or in connection with the provision of investment advice, the

administration of any funds or taking of any deposits as contemplated in:

(i) the Banks Act 94 of 1990;

(ii) the Financial Advisory and Intermediary Services Act 37 of 2002;

(iii) the Agricultural Credit Act 28 of 1996;

(iv) any law administered by the Financial Sector Conduct Authority and/or the

South African Reserve Bank and any regulations issued thereunder; or

(v) the Medical Schemes Act 131 of 1998

as amended or replaced;

f) arising where the Insured is instructed to invest money on behalf of any

person, except for an instruction to invest the funds in an interest-bearing

account in terms of section 78(2A) of the Attorneys Act 53 of 1979 and/or

section 86(4) of the Act, and if such investment is done pending the

conclusion or implementation of a particular matter or transaction which is

already in existence or about to come into existence at the time the investment

is made;

This exclusion does not apply (subject to the other provisions of this policy) to

funds which the Insured is authorised to invest in his or her capacity as

executor, trustee, curator or in any similar representative capacity;

g) arising from or in connection with any fine, penalty, punitive or exemplary

damages awarded against the Insured, or from an order against the Insured

to pay costs de bonis propriis;


h) arising out of or in connection with any work done on behalf of an entity defined

in the Housing Act 107 of 1997 or its representative, with respect to the

National Housing Programme provided for in the Housing Act;

i) directly or indirectly arising from, or in connection with or as a consequence of

the provision of Bridging Finance in respect of a Conveyancing

Transaction. This exclusion does not apply where Bridging Finance has

been provided for the payment of:

(i) transfer duty and costs;

(ii) municipal or other rates and taxes relating to the immovable property

which is to be transferred;

(iii) levies payable to the body corporate or homeowners’ association relating

to the immovable property which is to be transferred;

j) arising from the Insured’s having given an unqualified undertaking legally

binding his or her practice, in matters where the fulfilment of that undertaking

is dependent on the act or omission of a third party;

k) arising out of or in connection with a breach of contract unless such breach is

a breach of professional duty by the Insured;

l) arising where the Insured acts or acted as a business rescue practitioner as

defined in section 128 (1) (d) of the Companies Act 71 of 2008;

m) arising out of or in connection with the receipt or payment of funds, whether

into or from trust or otherwise, where that receipt or payment is unrelated to or

unconnected with a particular matter or transaction which is already in

existence or about to come into existence and is an essential or integral part

of the scope of the mandate to carry out Legal Services, at the time of the

receipt or payment and in respect of which the Insured has received a

mandate;

n) arising out of a defamation Claim that is brought against the Insured ;

o) arising out of Cybercrime. Losses arising out of Cybercrime will include, but

not be limited to, payments made into the an incorrect and/or fraudulent bank


account where either the Insured or any other party has been induced to make

the payment into the incorrect bank account and has failed to verify the

authenticity of such bank account;

For purposes of this clause, “verify” means that the Insured must have a face

to face meeting with the client and or other intended recipient of the funds. The

client (or other intended recipient of the funds, as the case may be) must

provide the Insured with an original signed and duly commissioned affidavit

confirming the instruction to change their banking details and attaching an

original stamped document from the bank confirming ownership of the

account.

p) arising out of a Claim against the Insured by an entity in which the

Insured and/or related or interrelated persons* has/have a material interest

and/or hold/s a position of influence or control**.

* as defined in section 2(1) of the Companies Act 71 of 2008

** as defined in section 2(2) of the Companies Act 71 of 2008

For the purposes of this paragraph, “material interest” means an interest of at

least ten (10) percent in the entity;

q) arising out of or in connection with a Claim resulting from:

(i) War, invasion, act of foreign enemy, hostilities or warlike operations

(whether war is declared or not) civil war, mutiny, insurrection, rebellion,

revolution, military or usurped power;

(ii) Any action taken in controlling, preventing, suppressing or in any way

relating to the excluded situations in (i) above including, but not limited to,

confiscation, nationalisation, damage to or destruction of property by or

under the control of any Government or Public or Local Authority;

(iii) Any act of terrorism regardless of any other cause contributing

concurrently or in any other sequence to the loss;


For the purpose of this exclusion, terrorism includes an act of violence or any

act dangerous to human life, tangible or intangible property or infrastructure

with the intention or effect to influence any Government or to put the public or

any section of the public in fear;

r) arising out of or in connection with any Claim resulting from:

(i) ionising radiations or contamination by radio-activity from any nuclear fuel

or from any nuclear waste from the combustion or use of nuclear fuel;

(ii) nuclear material, nuclear fission or fusion, nuclear radiation;

(iii) nuclear explosives or any nuclear weapon;

(iv) nuclear waste in whatever form;

regardless of any other cause or event contributing concurrently or in any other

sequence to the loss. For the purpose of this exclusion only, combustion

includes any self-sustaining process of nuclear fission or fusion;

s) arising out of or resulting from the hazardous nature of asbestos in whatever

form or quantity; and

t) Legal Services carried out in violation of the Act and the Rules.

Fraudulent applications for indemnity

17. The Insurer will reject a fraudulent application for indemnity.

Claims arising out of dishonesty or fraud

18. Any Insured will not be indemnified for a Claim that arises:

a) directly or indirectly from any Dishonest, fraudulent or other criminal act or

omission by that Insured;

b) directly or indirectly from any Dishonest, fraudulent or other criminal act or

omission by another party and that Insured was knowingly connected with, or

colluded with or condoned or acquiesced or was party to that dishonesty, fraud

or other criminal act or omission.


Subject to clauses 16, 19 and 20, this exclusion does not apply to an Innocent

Principal.

19. In the event of a Claim to which clause 18 applies, the Insurer will have the

discretion not to make any payment, before the Innocent Principal takes all

reasonable action to:

a) institute criminal proceedings against the alleged Dishonest party and present

proof thereof to the Insurer; and/or

b) sue for and obtain reimbursement from any such alleged Dishonest party or its

or her or his estate or legal representatives;

Any benefits due to the alleged Dishonest party held by the Legal Practice, must,

to the extent allowable by law, be deducted from the Legal Practice’s loss.

20. Where the Dishonest conduct includes:

a) the witnessing (or purported witnessing) of the signing or execution of a

document without seeing the actual signing or execution; or

b) the making of a representation (including, but not limited to, a representation by

way of a certificate, acknowledgement or other document) which was known at

the time it was made to be false;

The Excess payable by the Innocent Insured will be increased by an additional

20%.

21. If the Insurer makes a payment of any nature under the policy in connection with a

Claim and it later emerges that it wholly or partly arose from a Dishonest, fraudulent

or other criminal act or omission of the Insured, the Insurer will have the right to

recover full repayment from that Insured and any party knowingly connected with

that Dishonest, fraudulent or criminal act or omission.

The Insured’s rights and duties

22. The Insured must;


a) give immediate written notice to the Insurer of any circumstance, act, error

or omission that may give rise to a Claim; and

b) notify the Insurer in writing as soon as practicable, of any Claim made

against them, but by no later than one (1) week after receipt by the Insured,

of a written demand or summons/counterclaim or application. In the case of

a late notification of receipt of the written demand, summons or application

by the Insured, the Insurer reserves the right not to indemnify the Insured

for costs and ancillary charges incurred prior to or as a result of such late

notification.

23. Once the Insured has notified the Insurer, the Insurer will require the Insured to

provide a completed Risk Management Questionnaire and to complete a claim

form providing all information reasonably required by the Insurer in respect of the

Claim. The Insured will not be entitled to indemnity until the claim form and Risk

Management Questionnaire have been completed by the Insured, to the Insurer’s

reasonable satisfaction and returned to the Insurer.

24. The Insured:

24.1. shall not cede or assign any rights in terms of this policy;

24.2. agrees not to, without the Insurer’s prior written consent:

a) admit or deny liability for a Claim;

b) settle a Claim;

c) incur any costs or expenses in connection with a Claim unless the sum of the

Claim and Claimant’s Costs falls within the Insured’s Excess;

failing which, the Insurer will be entitled to reject the Claim, but will have sole

discretion to agree to provide indemnity, wholly or partly.

25. The Insured agrees to give the Insurer and any of its appointed agents:

25.1. all information and documents that may be reasonably required, at the

Insured’s own expense.


25.2. assistance and cooperation, which includes, but not limited to, preparing,

service and filing of notices and pleadings by the Insured as specifically

instructed by the Insurer at the Insurer’s expense, which expenses must

be agreed to in writing.

26. The Insured also gives the Insurer or its appointed agents the right of reasonable

access to the Insured’s premises, staff and records for purposes of inspecting or

reviewing them in the conduct of an investigation of any Claim where the Insurer

believes such review or inspection is necessary.

27. Notwithstanding anything else contained in this policy, should the Insured fail or

refuse to provide information, documents, assistance or cooperation in terms of this

policy, to the Insurer or its appointed agents and remain in breach for a period of

ten (10) working days after receipt of written notice to remedy such breach (from the

Insurer or its appointed agents) the Insurer has the right to:

a) withdraw indemnity; and/or

b) report the Insured’s conduct to the regulator; and/or

c) recover all payments and expenses incurred by it.

For the purposes of this paragraph, written notice will be sent to the address last

provided to the Insurer by the Insured and will be deemed to have been received

five (5) working days after electronic transmission or posting by registered mail.

28. By complying with the obligation to disclose all documents and information required

by the Insurer and its legal representatives, the Insured does not waive any claim

of legal professional privilege or confidentiality.

29. Where a breach of, or non-compliance with any term of this policy by the Insured

has resulted in material prejudice to the handling or settlement of any Claim against

the Insured, the Insured will reimburse the Insurer the difference between the sum

payable by the Insurer in respect of that Claim and the sum which would in the sole

opinion of the Insurer have been payable in the absence of such prejudice. It is a

condition precedent of the Insurer’s right to obtain reimbursement, that the Insurer

has fully indemnified the Insured in terms of this policy.


30. Written notice of any new Claim must be given to:

Legal Practitioners’ Indemnity Insurance Fund NPC

1256 Heuwel Avenue|Centurion|0127

PO Box 12189|Die Hoewes|0163

Docex 24 | Centurion

Email: [email protected]

Tel:+27(0)12 622 3900

The Insurer’s rights and duties

31. The Insured agrees that:

a) the Insurer has full discretion in the conduct of the Claim against the Insured

including, but not limited to, its investigation, defence, settlement or appeal in

the name of the Insured;

b) the Insurer has the right to appoint its own legal representative(s) or service

providers to act in the conduct and the investigation of the Claim;

The exercise of the Insurer’s discretion in terms of a) will not be unreasonable.

32. The Insurer agrees that it will not settle any Claim against any Insured without prior

consultation with that Insured. However, if the Insured does not accept the

Insurer’s recommendation for settlement:

a) the Insurer will not cover further Defence Costs and Claimant’s Costs beyond

the date of the Insurer’s recommendation to the Insured; and

b) the Insurer’s obligation to indemnify the Insured will be limited to the amount

of its recommendation for settlement or the Insured’s available Annual

Amount of Cover (whichever is the lesser amount).

33. If the amount of any Claim exceeds the Insured’s available Annual Amount of

Cover the Insurer may, in its sole discretion, hold or pay over such amount or any

mailto:[email protected]

tel:+27(0)12


lesser amount for which the Claim can be settled. The Insurer will thereafter be

under no further liability in respect of such a Claim, except for the payment of

Approved Costs or Defence Costs incurred prior to the date on which the Insurer

notifies the Insured of its decision.

34. Where the Insurer indemnifies the Insured in relation to only part of any Claim, the

Insurer will be responsible for only the portion of the Defence Costs that reflects

an amount attributable to the matters so indemnified. The Insurer reserves the right

to determine that proportion in its absolute discretion.

35. In the event of the Insured’s material non-disclosure or misrepresentation in respect

of the application for indemnity, the Insurer reserves the right to report the Insured’s

conduct to the regulator and to recover any amounts that it may have incurred as a

result of the Insured’s conduct.

36. If the Insurer makes payment under this policy, it will not require the Insured’s

consent to take over the Insured’s right to recover (whether in the Insurer’s name

or the name of the Insured) any amounts paid by the Insurer;

37. All recoveries made in respect of any Claim under this policy will be applied (after

deduction of the costs, fees and expenses incurred in obtaining such recovery) in

the following order of priority:

a) the Insured will first be reimbursed for the amount by which its liability in respect

of such Claim exceeded the Amount of Cover provided by this policy;

b) the Insurer will then be reimbursed for the amount of its liability under this policy

in respect of such Claim;

c) any remaining amount will be applied toward the Excess paid by the Insured

in respect of such Claim.

38. If the Insured gives notice during an Insurance Year, of any circumstance, act,

error or omission (or a related series of acts, errors or omissions) which may give

rise to a Claim or Claims, then any Claim or Claims in respect of that/those

circumstance/s, act/s, error/s or omission/s subsequently made against the Insured,


will for the purposes of this policy be considered to fall within one Insurance Year,

being the Insurance Year of the first notice.

39. This policy does not give third parties any rights against the Insurer.

How the parties will resolve disputes

40. Subject to the provisions of this policy, any dispute or disagreement between the

Insured and the Insurer as to any right to indemnity in terms of this policy, or as to

any matter arising out of or in connection with this policy, must be dealt with in the

following order:

a) written submissions by the Insured must be referred to the Insurer’s internal

complaints/dispute team at [email protected] or to the address set out in

clause 30 of this policy, within thirty (30) days of receipt of the written

communication from the Insurer which has given rise to the dispute;

b) should the dispute not have been resolved within thirty (30) days from the date

of receipt by the Insurer of the submission referred to in a), then the parties must

agree on an independent Senior Practitioner who has experience in the area

of professional indemnity insurance, to whom the dispute can be referred for a

determination. Failing such an agreement, the choice of such Senior

Practitioner must be referred to the Chairperson of the Legal Practice Council

to appointment the Senior Practitioner with the relevant experience;

c) the parties must make written submissions which will be referred for

determination to the Senior Practitioner referred to in b). The costs incurred in

so referring the matter and the costs of the Senior Practitioner will be borne

by the unsuccessful party;

d) the determination does not have the force of an arbitration award. The

unsuccessful party must notify the successful party in writing, within thirty (30)

days of the determination by the Senior Practitioner, if the determination is not

accepted to it;

40. The procedures in a) b) c) and d) above must be completed before any formal legal

action is undertaken by the parties.

mailto:[email protected]


SCHEDULE A

Period of Insurance: 1st July 2019 to 30th June 2020 (both days inclusive)

No of Principals

Annual Amount of Cover for Insurance Year

1 R1 562 500

2 R1 562 500

3 R1 562 500

4 R1 562 500

5 R1 562 500

6 R1 562 500

7 R1 640 625

8 R1 875 000

9 R2 109 375

10 R2 343 750

11 R2 578 125

12 R2 812 500

13 R3 046 875

14 and above R3 125 000


SCHEDULE B

Period of Insurance: 1st July 2019 to 30th June 2020 (both days inclusive)

No of Principals

Column A

Excess for prescribed

RAF* and Conveyancing

Claims**

Column B

Excess for all other Claims**

1 R35 000 R20 000

2 R63 000 R36 000

3 R84 000 R48 000

4 R105 000 R60 000

5 R126 000 R72 000

6 R147 000 R84 000

7 R168 000 R96 000

8 R189 000 R108 000

9 R210 000 R120 000

10 R231 000 R132 000

11 R252 000 R144 000

12 R273 000 R156 000

13 R294 000 R168 000

14 and above R315 000 R180 000

*The applicable Excess will be increased by an additional 20% if Prescription Alert is

not used and complied with.


**The applicable Excess will be increased by an additional 20% if clause 20 of this policy

applies.

the legal practitioners indemnity insurance fund npc … · 2019. 7. 4. · 2 2019/2020 lpiif...

Documents